Taipei: More than 50 percent of German businesses in Taiwan expressed positivity regarding the outlook of the Taiwanese economy, as revealed by an annual survey from the German Trade Office Taipei. The robust economic growth Taiwan experienced in 2024, coupled with its thriving industry sector, has "fostered optimism among German companies regarding Taiwan's economic outlook for 2025," stated the trade office in a report released alongside the survey on Thursday.
According to Focus Taiwan, the Business Confidence Survey 2024/2025 report indicates that 51.6 percent of respondents anticipate continued improvement in Taiwan's economy in 2025, with 53.1 percent maintaining optimism about the three-year outlook. Taiwan's economy saw a 4.3-percent growth in 2024, a three-year high, based on data from the Directorate General of Budget, Accounting and Statistics on January 24.
Eva Langerbeck, chief representative and executive director of the trade office, noted that many German firms in Taiwan also experienced improved performance in 2024. The report revealed that 62.8 percent of companies met their business targets in 2024, an increase of 10 percentage points from 2023, as per the trade office.
Despite Taiwan's significance as a market for German businesses in Asia, there are prevailing global and domestic challenges, Langerbeck mentioned. The survey indicated that 63.2 percent of respondents identified Taiwan's economic growth as their primary concern, while 55.8 percent expressed apprehension about cross-Taiwan Strait relations.
The trade office emphasized concerns about stable energy supply, with 57.9 percent of respondents advocating for diversified energy sources and robust backup energy systems as potential solutions. Moreover, domestic challenges such as import restrictions and issues in tender processes were highlighted in the report.
These concerns have led to an increase in the number of companies (41.7 percent) refraining from investment compared to those planning to invest (39.6 percent) over the next two years, marking a first since 2017. Taiwan's economic performance has been bolstered by German businesses' involvement in critical industries, particularly the semiconductor and auto sectors, as noted by Emile M.P. Chang, director-general of the Department of Investment Promotion under the Ministry of Economic Affairs, during a news conference.
Chang, citing President Lai Ching-te's recent proposal for a "Global Semiconductor Democratic Supply Chain Partnership Initiative," suggested that Taiwan and Germany collaborate to address challenges posed by U.S. President Donald Trump's tariff policies targeting the semiconductor industry. The German Trade Office Taipei is part of the worldwide network of German Chambers of Commerce Abroad.
The survey, which began in 2012, was conducted between November 13 and December 20 last year, achieving a "high" response rate of 37 percent from 260 eligible businesses, according to the trade office.